A plan for a new airport, one of the largest in the world on a 2,600 hectare site in the Kandal District of Cambodia, with an accompanying ‘Airport City’, has reignited one of the country’s fiercest land disputes.

In January the Cambodian government approved a plan for a new airport, one of the largest in the world by land area, on farmland in the Kandal Province, about 30 kilometres south of Phnom Penh. Construction of the new airport is anticipated to commence in 2019 and a 21st December 2017 document from the Council of Ministers approved an investment proposal from Cambodia Airport Investment, a joint venture between the State Secretariat of Aviation (SSCA) and Overseas Cambodia Investment Corporation (OCIC). OCIC is a private firm, one of the largest finance, infrastructure and real estate companies in Cambodia, owned by tycoon Pung Khiev Se, with a track record of financing major development projects.

The land area earmarked for the airport project, 2,600 hectares, is more than six times larger than the existing Phnom Penh Airport’s 400 hectares and considerably larger than Beijing Capital Airport, the world’s second busiest passenger airport, with a 1,480 hectare site and handling over 94 million passengers in 2016. Predominantly low-lying agricultural land, the proposed site is on the northwestern shore of a large lake, Boueng Cheung Loung. Preparing the lakeside area of the proposed site for airport construction would require land reclamation and it is thought that there is some overlap with the lake itself.

A map produced by GAAM shows the proposed airport site, based on a modified satellite image published in the Phnom Penh Post. The authors of the article were not certain whether the proposed airport site is state-owned or part of OCIC’s vast land bank. The rectangular area outlined in red is the approximately 700 hectare area allocated for the airport, the adjoining shaded area, approximately 1,900 hectares, is earmarked for development of an ‘Airport City’, described by SSCA spokesman Sinn Chanserey Vutha as a mixed-use development including a commercial centre and residential housing. Chanserey Vutha explained that investors will not be able to generate a profit from the airport itself, so the land for the Airport City is being offered to investors for generating profits from commercial centres and other amenities.

Land rights protests as villagers fear eviction

Announcement of the new airport and associated development sent land prices soaring upwards and within days land for sale signs were hastily erected. Rice fields and lakeside properties in the area that had been valued at between US$20,000 – 50,000 per hectare before announcement of the new airport began selling for as much as US$100,000 or even US$200,000 per hectare. Kandal District villagers were shocked by sudden news of the airport project, along with publication of maps appearing to show the new airport and a massive multi-use development on land they have resided on and near for more than two decades. Their land ownership is disputed by a local ‘oknha’ or tycoon, Seang Chanheng, who has long laid claim to it. A government-aligned media outlet, Fresh News, released documents purporting to show that the land had belonged to Seang Chenheng all along, but even provincial authorities profess uncertainty regarding rights to the land. Regardless of this uncertainty, a large area of disputed land was recently purchased for the airport project, by OCIC in partnership with the SSCA.

Several communes in the Kandal Stung district are wracked by long-running land disputes; the airport project has raked up old tensions and new potential conflicts are looming. Already, there are indications that the authorities are siding with Chanheng’s company and criminalizing protest by villagers residing near the land earmarked for the new development. At the beginning of February over 100 villagers blocked bulldozers from digging a dam on disputed land adjacent to the proposed airport site. Subsequently, Kandal Military Police summoned six villagers to appear for questioning after Chanheng accused them of “incitement” and obstructing her machinery. Oeung Sary, one of the villagers called in for questioning, was undeterred by the order, saying “We will go to meet with the Military Police whether they arrest us or not, because we are fighting for our land…We have no guns or power to fight them with. If they want to jail us, let them jail us.”

On 19th February affected villagers staged a major protest. Over 200 people from four communes gathered at Kandal Provincial Hall to voice their complaints regarding land earmarked for the new airport and seek resolution of the dispute with Seang Chanheng. Oeung Sary remained defiant and determined to stay on the land. Refusing to appear before the military police she said “We will not go to answer. If they want to arrest us, let it be” and accused the government of “bias” in favour of Chanheng’s company. Another villager, Sorn An, said she was one of several villagers who had sold land, in her case belonging to her grandmother, to Chanheng’s company but been underpaid, selling it for $250 per hectare but receiving a fraction this amount, just $25 or $50. She said they had been intimidated during negotiation over the land, that representatives of the company had slammed the table in front of them, threatened them, locked the door and called the police.

Reigniting one of Cambodia’s fiercest land disputes

One of the fiercest and lengthiest land disputes in Cambodia has been reignited by the new airport project. Nearly 300 families living in three villages in the Kandal District, still bearing their Pol Pot era names of Point 92, Point 93 and Point 94, have resided in the area for more than twenty years. Before the residents settled upon it the land was uncultivated. Their ownership of it appears to be legitimate on the basis of a 2001 law that people living peacefully on uncontested land for five years can lay claim to it.

But in 2005 Chenheng’s men began bulldozing the land in order to claim ownership of it. The villagers achieved a rare legal victory in 2006-7 when the Kandal Provincial Court upheld their claim to the land. Some families were issued with temporary land titles, but the official land titles that they were assured of were not issued. Chanheng’s company began clearing the land again in 2009, bulldozing villagers’ farms and a much loved local temple. Company security guards and Military Police fired on villagers who came to protest, wounding three of them. Prime Minister Hun Sen did not respond to a protest outside his house. In 2010 ten villagers attempting to block bulldozers from destroying their ripening rice crops were arrested and charged with land grabbing and incitement in connection with the protests, a move decried as harassment by human rights organizations.

Suddenly, in 2014, the Supreme Court ruled that the disputed land belongs to Min You Cultural Foundation, a company which appeared to be unregistered with no trace of it to be found in Ministry of Commerce records. The Court made this ruling even though it acknowledged “many irregularities” in the sale of the land to this company. Villagers had not heard of the company or the court case or the hearing and were not even called to testify at the hearing.

As land disputes erupt again in the wake of the planned new airport, with villagers fearing they will be stripped of their land and evicted, human rights groups argue that development on the land should cease until land disputes are resolved. Vann Sopathi, business and human rights coordinator for the Cambodian Center for Human Rights, said that government and developers should conduct a social and environmental impact assessment of the airport project, and that it should not be permitted to proceed until a mutually acceptable solution is agreed between the company and the affected people.

Villagers are not the only people embroiled in land disputes relating to the new airport; several high-ranking officials own land in the Kandork commune which overlaps with the northernmost portion of the proposed site and a group of them complained of encroachment by an un-named Chinese company. Villagers were hired to guard their plots and one woman said she had climbed onto a bulldozer to prevent men digging her employer’s land.

Cambodia is beset with a multitude of land disputes due to ambiguities over, and haphazard implementation of, land rights laws. The dispute over the land that is now announced as the site for a new airport is a typical example of tensions between elites with legal claims and villagers who have lived on the land for long periods and whose informal claims are backed by local authorities. Such land disputes are usually settled in favour of people with power and money, as they have the necessary influence and social connections to produce the requisite documentation.

Airport project financing

The projected cost of the new airport is $1.5 billion. Of this sum, OCIC will invest US$280 million and US$120 million will come from public funds, but the bulk of the funding, $1.1 billion, will come from “foreign banks” that at the time of the announcement remained unspecified. But it is clear that at least a significant proportion of the foreign investment will be from China. OCIC signed a “co-operation framework agreement” for the new airport with the state-run China Development Bank. Chinese financing of the new airport is one of 19 agreements to develop Cambodia’s infrastructure, agriculture and health system, signed on 11th January during a visit by Premier Li Keqiang. The deals were signed by various representatives of the Cambodian and Chinese governments in a ceremony lasting less than 10 minutes. Officials did not ask any questions and few details were given about the agreements, even though they are likely to impact heavily on Cambodia’s future development.

At this juncture it is unclear whether the new airport is intended supplement or replace the established Phnom Penh Airport. SSCA spokesman Chanserey Vutha declined to comment on whether the existing airport will be dismantled once the new airport becomes operational. Closing down the existing airport would render the considerable amount of investment in the facility in recent years wasteful and short-sighted. A US$100 million expansion of Phnom Penh and Siem Reap airports commenced in 2014, extending the passenger terminals and parking lots and enlarging the commercial space with more shops and food and beverage outlets. In December 2017, as plans for the new airport were announced, a new US$26 million arrivals hall was inaugurated at Phnom Penh Airport, incorporating extension of the boarding concourse.

China has also confirmed financing for a new airport in Siem Reap, a resort town most renowned for Cambodia’s most famous tourist attraction, the Angkor Wat temple complex. The new airport is to be constructed on a 700 hectare site in the Sotr Nikom district 50 kilometres outside Siem Reap city. Groundbreaking, marking the beginning of construction of the new airport, is imminent. The US$880 million agreement with China’s Yunnan Investment Holding Ltd (YIHL) allowing the state-owned company to manage the new Siem Reap airport under a 55-year build-operate-transfer (BOT) concession was actually announced in August 2017, with YIHL reportedly having already commenced land clearance. Double the capacity of the existing Siem Reap Airport the new airport will be able to handle 10 million passengers per year.

Road projects

Number 13 in the list of 19 China-Cambodia development deals is an expressway linking two hotspots for Chinese investment: Sihanoukville and the existing Phnom Penh Airport. Sihanoukville, a resort city on the Gulf of Thailand, is a major destination for Chinese property investment, construction boom in recent years, hotels, casinos and thousands of apartments. China has also invested heavily in Sihanoukville Special Economic Zone, promoted as Cambodian equivalent of the Shenzhen tech hub, with about 100 Chinese firms already operational.

The Sen Sok district surrounding Phnom Penh Airport is also a magnet for Chinese residential development and investment. The 190 kilometre highway, 4 lanes wide for most of its length, is expected to cost nearly US$2 billion. It could lead to evictions. Ministry of Public Works and Transport spokesman, Va Sim Sorya, said that the expressway would likely infringe upon people’s homes and land, but that it would be the responsibility of China’s state-owned China Communication Construction Co. to provide fair compensation for affected people, with the assistance of the ministry.

The planned new Phnom Penh airport appears to be linked with another road project. An article on the Construction & Property website, which includes a map of the new airport site and a video of the joint Cambodia and China signing ceremony, shows Ringroad Number 3 running through the north of the site. The Cambodian government is building three ring roads around the outskirts of Phnom Penh; construction of the third outer ring road, part of an expressway development masterplan US$9 billion expenditure on 850 kilometres of roads by 2020, is expected to commence in 2018.

Evictions for OCIC ‘satellite city’

By land area, the airport and ‘Airport City’ project is an even bigger project for OCIC than its 387 hectare, Chroy Changvar satellite city. The airport project’s US$1.5 billion budget is comparable with US$1.6 billion for Chroy Changvar, which is now under construction and the largest property development in Phnom Penh. A protracted land dispute with residents from six communities, living on and depending upon the land for years, dates back to 1994 when the government banned construction of homes on the land, designating it for development two years later. In 1998 Prime Minister Hun Sen reassured landowners who had lived on the site for a minimum of five years that they would not be evicted, reiterating this in a 2002 speech. A number of residences were duly excluded from the project site. But 200 families were not so fortunate, in spite of being in possession of official documentation proving their land ownership, and in 2016 were informed they would have to accept the compensation offer.

In February 2016 100 people representing 359 affected families facing eviction for Chroy Changvar petitioned Phnom Penh City Hall in a bid to resolve the land dispute with OCIC. They urged the government to halt alleged housing rights violations, calling either for higher compensation of US$400 per square metre as opposed to OCIC’s offer of just US$15, or to be given back half of their land, not merely 10 per cent of it as was proposed. In April 2016, in spite of the ongoing land dispute, OCIC, protected by 50 security guards, resumed bulldozing to make way for a new road and drainage system to serve the planned city, in spite of two families laying claim to the land being cleared and one resident stating that she had not been compensated. High security echoed 2014 when security guards stopped an attempt by 40 villagers to stop machinery pumping sand onto wetlands, causing water to rush back into the river, destabilizing their homes and putting them at risk of flooding. Protest continued into 2017, in February 40 villagers gathered to demand compensation for land taken for the new city.

Cambodia’s crackdown on democracy and human rights

China is, by far, Cambodia’s biggest trading partner and and its biggest source of foreign aid, investment and tourists. Backing from China has bolstered the Hun Sen government, the world’s longest serving Prime Minister, since 1985, and its investment increases in the face of a crackdown on democracy, freedom of expression and human rights. Cambodia is regressing to its authoritarian past as a political crackdown silences opposition figures, civil society groups and independent media. Critics are slammed with accusations of treason, defamation, collusion with foreign governments and being a threat to national security. Democracy is in a death spiral. The Cambodia National Rescue Party (CNRP) has been dissolved, its leader Kem Sokha is in jail awaiting trial on charges of ‘treason’ and 118 senior party members have been banned from political activity for five years. CNRP is the only real opposition party, so Hun Sen’s Cambodian People’s Party (CCP) will effectively run unchallenged in the upcoming national elections in July. Human Rights Watch warned of the “death of democracy”.

In November 2017 two former Radio Free Asia (RFA) journalists were charged with espionage; still in custody, they could face a 15 year jail sentence if found guilty. They were arrested on the basis of a vaguely worded provision in the penal code criminalizing passing information to a foreign state that could damage national security. Their defence lawyer says the charges against them are baseless and a petition for their release is currently before the Supreme Court. Under the same provision, an Australian film-maker was jailed for flying a drone at an opposition rally. Two former Cambodia Daily reporters were charged with incitement after asking questions during the lead-up to the June 2017 local elections. Both RFA and Cambodia Daily closed down their Cambodia newsrooms after being suddenly issued with enormous tax bills, US$6.3 million with one month to pay in the case of Cambodia Daily, a 24-year old independent newspaper which published its final edition with the damning headline “Descent Into Outright Dictatorship”. A representative of the Committee to Protect Journalists said that the Cambodian government’s arrests and threats against journalists are a “clear and present danger to press freedom”.

The tightening grip of repression is also restricting activists. Amnesty International called for convictions against two environmental activists who filmed large vessels off Cambodia’s coast suspected of illegally carrying sand for export. Hun Vannak and Doem Kundy, from the NGO Mother Nature, were sentenced to one year in prison plus fines for this exposé aiming to galvanize action to curb the illicit trade on 26th January 2018. Foreign NGOs have been targeted, for example staff of US-based National Democratic Institute were ordered to leave the country, accused of receiving assistance from foreign governments.

As the Cambodian government persecutes citizens and NGOs for collaboration with foreign governments it is bending over backwards to enable China to increase its economic and geopolitical influence. As the 19 agreements for billions of dollars worth of Chinese investment in Cambodia’s infrastructure, including the new airport, were signed Cambodia pledged its support for China’s international goals. Specifically, Cambodia agreed to support China’s claims to disputed territory in the South China Sea, where jurisdictional disputes and construction of ports, military installations and airstrips are straining its relationships with several countries in Southeast Asia. China also gains increased access to Cambodian resources, such as oil, gas and timber, and can take advantage of low tax rates and cheap labour. Critics argue that Cambodia is selling itself short and will pay a price for China’s financial support, warning of ending up in its giant ally’s pocket and already losing its voice on regional issues.

The Polish government has approved a plan for a mega-airport and ‘airport city’ on a 3,000 hectare site. An area of farmland has been identified as a suitable location for the project.

On 7th November, the second day of the UN Climate Change Conference (COP23) in Bonn, the Polish government approved a plan to build a new mega-airport, called Poland Central Airport or New Central Polish Airport, handling as many as 100 million passengers per year. The project would result in a a major increase in Poland’s greenhouse gas emissions. Poland, host of the next climate summit, COP24, in December 2018, is already widely regarded as a climate renegade for its continued investment in coal plants, and had the dubious honour of being awarded Fossil of the Day award in Bonn, for its relentless efforts to siphon European Union (EU) funds for clean energy into subsidizing its ageing coal plants. Announcement of a major airport project makes a further mockery of the country’s commitments to address climate change.

The proposed airport site is in Baranów, a rural gmina (administrative district) 40 kilometres to the west of Warsaw, Poland’s capital city. The map below, commissioned by Polski Fundusz Rozwoju (PFR) in 2008 and included in an article published on 8th October 2017, about a meeting on the airport between representatives of the government and Baranów municipality, shows two areas identified as suitable for the airport project: a 3,421 hectare area to the north of the map and a larger 11,338 hectare area to the south. Another variant of this map was included in a 100 page document discussed at the government meeting which adopted the airport plan, Poland’s biggest infrastructure project in recent years, on 7th November. At this meeting it was confirmed that the planned location of the airport is the Stanisławów village area, near the southern boundary of the area identified as suitable for the project.

A map produced by GAAM shows the villages within the boundaries of the two areas identified as suitable for the airport project and the existing road and rail links.

A satellite image of the Stanisławów village area, confirmed as the planned location for the new central airport, shows the villages and small parcels of cultivated land that characterize the wider area.

A mega-airport, multi-modal transportation hub and an aerotropolis

The schedule for the new airport is for preparatory works to be complete by the end of 2019, then for construction to be complete and operations to commence by mid-2027. A mega-airport is planned, one of the largest in the world with four runways, initially serving 45 million passengers per year, rising to 100 million, a passenger throughput as high as the world’s busiest airports, almost as high as Atlanta in the US and higher than the current traffic levels at Dubai Airport and Beijing Capital Airport. A multi-modal transportation hub is planned, integrating the new mega-airport with existing and new road and rail infrastructure. Plans for the airport include a rail station and the project is also referred to as Centralny Port Komunikacyjny (CPK), which translates as Central Communication Port. The proposed airport site is between Warsaw and Łódź, Poland’s third largest city, and a high-speed rail line connecting the two cities is planned. The A2 motorway running between Poland’s western and eastern borders is immediately south of the proposed site. Immediately north of the airport site is the rail line between Berlin and Moscow, via Warsaw, providing a high-speed service that commenced operations in December 2016.

The 3,000 hectare land area for the new airport is far larger than would be required even if the number of passengers meets the projection of 100 million per annum. A 3,000 hectare site is more than 50 per cent larger than the world’s busiest airport, Atlanta in the US which handles 104 million passengers per year. Atlanta Airport’s site covers 1,900 hectares and encompasses substantial commercial development including more than 200 concession outlets such as retail, food and beverages. The oversized proposed land area for Poland Central Airport could be linked to plans for an ‘airport city‘ or aerotropolis. A 1,200 hectare new city is envisaged, with hotels and showrooms. Under the government resolution outlining plans for the new airport legal and infrastructural changes to Baranów would allow for construction of business parks, conference centres, an exhibition centre and office complexes.

A government financed megaproject

The budget for the airport project, combined with the road and rail infrastructure, is estimated at between €7 – 8 billion. Polish citizens will bear the brunt of the enormous cost of the project; the main investor is the government. The 7th November 2017 resolution announcing construction of the airport approved the financing structure as well as the location. An article in the second 2017 edition of Airport Development News, an industry newsletter published by Airports Council International, stated that two state-owned financial institutions, Polish Development Fund (Polski Fundusz Rozwoju – PFR) and Bank Gospodarstwa Krajowego (BGK), Poland’s national development bank, would be ‘heavily involved’ in financing the project.

Possibilities for European funding have been considered. The Airport Development News article states that between 75 and 80 per cent of airport construction will be financed by international institutions such as the EIB (European Investment Bank) and EBRD (European Bank for Reconstruction and Development). Such investment by the EIB and EBRD is doubtful as state aid rules preclude allocation of EU funds for construction of the airport. But a June 2017 article published by legal analyst firm Lexology stated that EU funds could be tapped for the road and rail elements of the project. The total cost of the rail infrastructure elements of the megaproject complex is estimated to be between €1.89 billion and €2.1 billion, the total cost of roads and highways between €424,000 and €1.6 billion.

Uncertainty over accessing EU funds has led to attempts to secure financing from Chinese sources. The airport was one of the vast transportation and energy infrastructure projects discussed at the May 2017 Summit of the Belt and Road in China, where the President of China repeated assurances about new credit lines by China Development Bank and China Exim Bank, and one of the outcomes was signing of a contract between Polish and Chinese state railways on facilitating container transport. The Asian Infrastructure Investment Bank (AIIB), a multilateral financial institution supporting construction of infrastructure in the Asia-Pacific region, is reported to have expressed an interest in co-financing the Poland Central Airport project, if it is in line with the bank’s policy of promoting ‘interconnectivity’ between continents, which would mean that the airport would have to promote passenger traffic with Asia. Potential benefits to Chinese exporters from the airport are evident. The project would support the Polish government’s intention to establish the country as a port of entry for Chinese goods into the EU single market.

Industry experts doubt feasibility of the new airport

Some industry experts are critical of the new airport, doubtful that a new global hub could compete with established European hub airports such as Schiphol and Frankfurt and saying that it would struggle to meet its traffic projections and fail to make a profit. And adoption of Poland Central Airport as a government priority reverses many years of sloughing huge sums of public money into several new small regional airports. A major new hub airport would compete with these regional airports, many of which are already struggling with low passenger levels and unprofitable. Some industry experts warn that opening a new hub airport would be likely to lead to the closure of several existing Polish airports.

Expenditure on a new airport that results in closure of established regional airports would be an astonishing waste of public funds. Between 2007 and 2015 Poland sank at least US$1.58 billion into building and expanding 14 regional airports, with 40 per cent of this funding coming from the European Union (EU). This was highlighted in a report Flights of fancy: A case study on aviation and EU funds in Poland published in 2012 by CEE Bankwatch Network which critiqued the development and operation of small regional airports which were not financially viable, placing a strain on regional and local government budgets, along with allocation of EU funds for rail connections to airports, arguing it should be redirected to serving mobility needs within regions.

Aviation industry consultancy CAPA (Centre for Aviation) reports that Poland Central Airport would replace Warsaw Chopin Airport, the city’s main airport located south of the city with limited room for expansion. Bloomberg also reports that, under the government plan for the new airport, Warsaw Chopin Airport would eventually be shut down. Closing Warsaw Chopin Airport would be a woeful example of enormous waste of public funds and short-sighted planning. A major, multi-million Euro programme of upgrades to Warsaw Chopin Airport, increasing its capacity to 10.4 million passengers per annum, was completed less than a year ago, in December 2016. The terminal was modernized including installation of new check-in desks and an observation deck, a new long-range fuel pipeline constructed and the runways, taxiways and apron have been upgraded. The airport upgrade programme cost €166,760,000 with the EU Cohesion Fund contributing €32,900,000.

Rafal Milczarski, CEO of Poland’s state-owned carrier, LOT Polish Airlines, has said that Warsaw Chopin Airport should be closed down and the land sold to real estate developers to help finance the new airport. This would certainly benefit LOT, a leading proponent of the central airport. Indeed, supporting growth of the national airline is part of the rationale for the project. But the role of LOT in the new airport is a factor in skepticism regarding its viability. LOT is a relatively small carrier with fewer than ten wide-bodied aircraft. A high level of investment would be required for LOT to become one of Central Europe’s main carriers, one of the goals of the the airport project. Critics are of the opinion that the LOT lacks the scale and financial capacity necessary for commercial viability of the new airport project. LOT Polish Airlines also has a history of government intervention to support ailing finances. The carrier was a direct beneficiary of state funds in 2012-2014 when it was rescued from bankruptcy with a €200 million state bailout.

There are serious doubts over the viability of the Poland Central Airport project. The only certainties are vast public expenditure on infrastructure and loss of a large area of farmland.